Older vehicles with over 100,000 miles may be suddenly more valuable than their owners would have expected; they’re now selling considerably faster and for much more money amid growing demand.
Trucks have seen the largest increase of year-over-year average transaction prices, according to consumer site Edmunds, with the Chevy Silverado 1500 and Ford F-150 taking the lead.
Owners of used vehicles of any vintage should check their car’s current value; chances are they could be worth much more than you think.
If you have a used vehicle in the driveway, you may be sitting on a pile of cash and not even know it. Influenced by the global chip shortage and ongoing effects of the COVID-19 pandemic, there’s an increased demand for used vehicles amid a shortage of new ones to buy.
The consumer website Edmunds has noted that high-mileage older vehicles, and used cars in general, are “selling faster and for more money than ever.” The same is true for used cars in general, as our family found out recently. In September 2017, we bought an entry-level 2017 Mitsubishi Mirage ES hatchback new for $9600, a significant discount from the MSRP, which was in the $13,000 range. Nearly four years later, with 18,266 miles on it, we sold the car to CarMax for $9400—just $200 under its original purchase price. The car was later listed at $12,998, essentially the same as MSRP.
Edmunds’ data shows that this was no fluke. Its analysts said the average transaction price for older, high-mileage vehicles sold at dealerships was up 31 percent year over year for vehicles with odometers reading from 100,000 to 109,999 miles. Where the average was $12,626 in June 2020, last month it climbed to $16,489. This set of vehicles also sold in an average of 30.5 days in June 2021 compared with 37.7 days in June 2020.
The Edmunds list of top 100,000-mile-plus sellers was led by the Chevrolet Silverado 1500, up 49 percent year over year with an average transaction price of $26,914, followed by the Ford F-150 at an average price of $25,924, up 43 percent, and the Ram 1500, up 42 percent with an average transaction price of $24,657. Filling out the top 10 were the Ford Escape; Honda Accord, Civic, and CR-V; Jeep Grand Cherokee and Wrangler; and the Toyota Camry. All of the top 10 were at least 6.5 years old and some were more than eight years old.
Neal Coppola, general sales manager at Oregon dealership Tonkin Gresham Honda, has been in the auto industry since 2001 and told Car and Driver: “We’re adjusting inventory to people’s needs. A five-year-old SUV that used to be $20,000 is now $28,000 . . . [but] you need to backfill and still have that $20,000 car.” He adds with values escalating, the only way to do that is offering older and/or higher-mileage vehicles.
Coppola said the company is now forced to pay “scary dollar amounts” for auction or trade-in
Justice Clarence Thomas shut down an appeal to the Supreme Court challenging the Centers for Disease Control and Prevention’s mandate requiring masks on public transportation.
In an order handed down Tuesday evening, Thomas rejected the request for an injunction without referring the case to the rest of the court. Thomas’s decision came a week after Lucas Wall, a frequent flyer from Washington, D.C., asked the court to halt the mandate in a complaint leveled against the CDC, President Joe Biden, and a slew of other federal agencies.
After Thomas rejected his case, Wall acknowledged that the appeal was a “long shot,” especially since he is still awaiting a trial before a district court in Orlando, Florida.
“Of course it’s still disappointing Justice Thomas did not take a more in-depth look at the illegal and unconstitutional mask requirement,” Wall said.
Wall brought the case forward after he was ejected from the Orlando International Airport in early June for not wearing a mask. In his complaint, he claimed that a generalized anxiety disorder made it impossible for him to follow the “improper, illegal, and unconstitutional” mandate. Most states at that point had already removed mask mandates, if they had them in the first place.
When Wall appealed to the Supreme Court, he said that a narrow decision in favor of the CDC’s eviction moratorium, which is set to expire at the end of July, signaled that the justices were open to striking down pandemic-era orders.
And even though Thomas shut down his appeal, Wall said he still believes he will win his case against the agency eventually.
“For now, the federal government has prevailed in muzzling all travelers and banning tens of millions of Americans including myself who can’t tolerate having their face covered from using any form of public transportation,” he said.
Apparently that new car smell just isn’t the same for some electric car customers.
Ford has developed a gasoline-scented fragrance for EV owners to help them make the transition to battery-power.
The Mach-Eau GT was unveiled at the Goodwood Festival of Speed in England, where Ford is showing off its electric Mustang Mach-E. Company CEO Jim Farley even took a racing version of the car for a run up the venue’s hill climb course.
Ford conducted a survey asking people what they’d miss about internal combustion engine vehicles and 70% said gasoline, Autoevolution reported.
“Judging by our survey findings, the sensory appeal of petrol cars is still something drivers are reluctant to give up. The Mach Eau fragrance is designed to give them a hint of that fuel-fragrance they still crave. It should linger long enough for the GT’s performance to make any other doubts vaporize too,” Ford spokesman Jay Ward said.
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The concoction doesn’t actually contain any petroleum, but “is designed to please the nose of any wearer; a high-end fragrance that fuses smoky accords, aspects of rubber and even an ‘animal’ element to give a nod to the Mustang heritage,” according to Ward.
Unfortunately for gas guzzlers, it’s also not for sale, but was created purely as a promotion. (Well, that … stinks.)
The Mach-E does have a feature that tries to help with the transition from muscle cars to silent electric power, however. The car is equipped with a system that plays a digitally-created audio track inspired by the rumble and exhaust of an internal combustion engine powertrain that has a loud setting labeled “Unbridled,” but can also be turned off.
situated next to the central station in uppsala, sweden, tengbom architects designed a bicycle garage that has room for 1200 vehicles inside its unique triangular shape, with mirroring glass façades clad over an exposed wooden frame. this garage promotes both environmental and social sustainability and has become a beacon of the city’s sustainability ambitions.
all images by felix gerlach a sustainable bicycle garage with a bold and solid design
tengbom architects combined practical functionality with a strong design concept, by trying to make the area safer while reinforcing uppsala’s identity as a bicycle community. situated in a rather dark and unsafe area by the central station, the transparent façades allow programmed lighting to spread, making the commuters´ path more appealing and safer at night and during wintertime. created in collaboration with a lighting consultant, tengbom architects strived to make the area safer while at the same time emphasizing the building’s wood structure. inside the building, lighting effects have been added to the soles of the wooden beams. programmed to change colors, they give the illusion of northern lights.
an illusion of the northern lights emerges on the bottom side of the wooden beams through the lighting design, which is programmed to change colors
the two floors are connected by a wooden ramp, making it possible to ride the bike between floors. the bicycle garage has an exposed wood structure, clad in glass façades with black steel molding. along with its triangular shape, the simplicity in structure and use of materials provide the building with a strong sense of identity. at the same time, its glass façades mirror their surroundings, causing the large volume to seemingly disappear from view at certain angles.
the center of attention is the distinct geometrical design
the garage also relates to the station building next door through the mirroring of its lantern roof and geometric expression with an inverted use of steel and glass. the building faces contrasting spaces on all three sides: the platform, a viaduct, and a bus station. restrained materials – concrete, black steel, and wood – have been carefully selected to provide a sense of lightness and simplicity, giving the building a distinct but uncomplicated expression that works within each context.
the bicycle garage is situated in quite a dark location, which is why we collaborated with bjerking to create a lighting design that illuminates and highlights the warm wood
moreover, tengbom architects placed solar cells on the sedum-covered roof. while absorbing excess water from the heavy downpours, the roof also functions as a fourth façade toward the many tall buildings that surround the bicycle garage. both environmental and social sustainability have been cornerstones throughout the project.
the transparent façade provides weather protection as well as a feeling of security
as few materials and colors as possible brings out the beautiful wood construction
a bicycle garage that focuses on design, a sense of security, and eco-friendly materials
a wooden ramp makes it possible to ride your bike between the floors and binds
Widespread inflation has led to the highest raw material cost per U.S. vehicle since 2011, a new Bank of America (BAC) Global Research report found.
The report examines the recent bout of US inflation and examines its consequences for the automotive industry.
One key takeaway from the report is that the cost of raw materials has risen sharply since mid-2020. “In the past year, the raw material cost in an average U.S. vehicle has been steadily rising, increasing ~87% from a low point of approximately $2,200/unit in Apr ’20 to now roughly $4,125/unit in May ’21,” the report found. “During this raw material cost inflation, average transaction prices seem to have stalled, although [they] still remain elevated at record high levels.”
The compressing spread between rising raw material prices and stagnating average transaction prices is expected to increase pressure on automakers and suppliers’ respective financial bottom lines.
The average vehicle is composed of 39% steel and 11% aluminum. The increase in raw materials cost has been concentrated heavily in high steel prices; the Bank of America report estimated that the average cost per pound for steel used in automotive manufacturing has increased 106% year over year as of last month. This is “relatively alarming,” according to the report, given the high makeup of steel in the average vehicle.
Suppliers and original equipment managers (OEMs) are expected to bear the brunt of rising material costs, with the latter facing even greater exposure to indirect costs from the former.
Rising inflation costs, plus pre-existing damage to supply chains caused by the pandemic present problems for both groups. “The automotive value chain is already facing significant headwinds from supply chain disruptions and production stoppages,” the report noted, “which continue to pressure margins in addition to rising raw material costs.”
The costs of raw materials have risen so greatly that they now make up a significantly larger percentage of the price of a vehicle. “The cost of raw materials in an average vehicle as a % of the average transaction price (ATP) in the U.S. reached historical lows around 6% (5.9% in April ’20) at the beginning of the COVID-19 pandemic, driven by historically low raw material costs and all-time high average transaction prices,” the report found. “However, this cost ratio has since increased, now reaching ~11%, as commodity prices have bounced materially off of lows and ATPs have remained near peak levels.”
By the end of spring, raw material costs had approached post-2000 historical levels, while average transaction prices remained essentially unchanged, posing “significant headwind for companies at the front end of the value chain,” according to the report.